JP Morgan Covered 36 Million Ounces of Naked Silver Shorts Since Sept 6th

We have speculated previously that JP Morgan was attempting to extricate itself from its 120 Million ounce naked short silver position during silver's most recent sell-off.
The CFTC's October Bank Participation Report seems to substantiate this fact.

On September 6th, 4 large US banks held 24,584 short silver contracts, the equivalent of a 122,920,000 ounce short silver position.  
The 4 large US banks' silver shorts had grown every month since silver's May smash-down, during which the same 4 banks had massively covered into the take-down and reduced their short position to 20,613 contracts.
The latest CFTC Bank Participation Report for October indicates that these same 4 large US banks (chiefly JP Morgan and HSBC) covered 7,177 silver shorts or 35,885,500 ounces during the September silver smash-down!
This means that effectively, JP Morgan and the other 3 major US banks (mostly JP Morgan) have reduced their naked silver shorts by approximately 29% during the latest PAPER FUTURES take-down.
At 17,407 contracts, the naked short COMEX futures position has now been reduced to 87,035,000 ounces- the smallest short position JP Morgan has held since it acquired Bear Stearns' silver shorts in 2008.  While this leaves JP Morgan and the other shorts in a much better position than several weeks ago when they held over 122 million ounces short, obviously this is still nowhere near a respectable cap should the CFTC ever actually implement position limits mandated by the Frank-Dodd act. 
17,407 is still well over 10 fold greater than the 1,500 contract position limit pushed for by Ted Butler.
This means one of 3 things.  Either:
1. The CFTC will continue to knee the ball (stall) until the clock runs out on the fiat financial system
2. JP Morgan will still be caught short over 80 million ounces of silver as silver rallies and clears $50
3. JP Morgan is not yet finished covering massive amounts of shorts into manipulated weakness ahead of the CFTC's Oct 18th vote on position limits and we can expect a final push to the $13-$14 level need to remove themselves from the majority of their short position.

10/04/11 

CMX SILVER       
                  U.S.               3,019  3.0     17,407 17.2     
              NON U.S.               2,979  2.9      2,616  2.6
                         ----    --------- ----  --------- ----
                           14        5,998  5.9     20,023 19.8

                     BANK                   LONG              SHORT          OPEN INTEREST
  DATE        

09/06/11 CMX SILVER 
               U.S.                           725  0.6        24,584 21.7         113,449
           NON U.S.                         3,096  2.7         2,781  2.5

08/02/11 CMX SILVER U.S.                    1,040  0.9        23,775 19.7         120,385
                NON U.S.                    2,796  2.3         3,573  3.0
                                                         

07/05/11 CMX SILVER U.S.                    2,413  2.2        23,084 20.7         111,251
                    NON U.S.                2,565  2.3        3,216  2.9
                                                          

 
06/07/11 CMX SILVER  U.S.                   2,302  1.9        22,628 18.7         121,191
                     NON U.S.               2,946  2.4        2,880  2.4

05/03/11 CMX SILVER  U.S.          4        1,783  1.4        20,613 15.6         131,907
                     NON U.S.     12        2,873  2.2        6,481  4.9

04/05/11 CMX SILVER  U.S.                     825  0.6        25,412 17.8        143,013
                     NON U.S.               2,882  2.0         7,647  5.3